Paris shines in the eyes of the world — once again this year, it’s among the most sought-after cities by foreign tourists — but the city is deeply in debt. A study by the Institut Montaigne, highlighted by Le Parisien, examined the financial situation of the twelve largest cities in France — Paris, Marseille, Lyon, Strasbourg, Toulon, Montpellier, Nantes, Nice, Rennes, Toulouse, Bordeaux, Lille — between 2019 and 2024, which roughly corresponds to the duration of the last municipal term. And while the situation is not so glorious in several towns across the Hexagon, it’s in Paris where the d&eacut.e;sastre is the biggest : the capital scores 3.4/10 in 2024.
Sur la situation financière de la Ville de Paris, beaucoup a été dit !
— Paris (@Paris) March 13, 2023
Et si on revenait aux transformations concrètes et on se projetait sur demain ?
C'est le sujet de notre conférence de presse « Paris accélère ses investissements ». ⬇️ pic.twitter.com/LE4OL3eLgb
A debt that could be repaid in several decades
10.6 billion euros is the debt accumulated by the capital in 2024. That’s the equivalent of €4,939 per resident. This amount has increased by 54% since 2019 and by 170% since 2014. The problem is that the interest on this debt amounts to 300 million euros annually. However, “debt repayment shouldn’t sustainably decrease until 2045,” the study explains. “The capital already displayed poor financial health before the start of the current term. Its trajectory reflects a gradual decline over the past ten years rather than a recent break."
;audit initiative.
Paris, Strasbourg, and Marseille at the bottom of the ranking
Is the situation truly catastrophic? Yes and no. « The wealth of the Parisian economy, the size of its tax base, and the theoretical possibility of increasing taxes are strong guarantees », says the Montaigne Institute. One measure that has been implemented is adjusting property tax — increasing it by 52%.
What about the next term? The mystery remains intact. According to the Institute, « Pierre-Yves Bournazel mentions 400 million in savings on the expenses of the City Hall, and Rachida Dati estimates between 600 million euros and 1 billion euros ». It’s Toulon, Montpellier, and Lyon that make up the bottom of the ranking.The "winning trio" in this ranking has respective scores of 7.1, 7, and 6.8/10. Next to Paris, the situation is alarming in Strasbourg (4.2/10) and Marseille (4.7/10).
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